interest only mortgage

[perx]

what is the best way of repaying one on a savings basis ie endowment/ISA, or other

[vicars]

The best way is different to everyone. However you may want to see if you can overpay on your mortgage to bring it down. That way you can save interest as opposed to earning it. Otherwise a cash ISA is a good start - you can save �3000 a year and get a good rate of interest. Endowments are the dinosaurs of the savings market and offer poor returns with their often high charges, although they do include life cover. However for investment and long term savings plans you could try a maxi ISA (or combination of mini cash and mini investment) and arrange a separate life cover if you need this.As a first step though start a cash ISA as they have no charges and you can get the money when you want if you have to pull it out - you then have the chance to make lump sum repayments into your mortgage if you need to.